Australian Retail Spending Increases 4% Amid Inflation Concerns

Australian retail spending edged up in March 2025 with a 4% year-on-year rise, led by strong gains in 'other retailing' categories like electronics and tech accessories, though overall momentum remains modest as retailers face inflation, high costs, and subdued consumer confidence. The latest consumer price index data showed inflation slightly above expectations at 2.9% year-on-year, with notable increases in housing, education, and food, but a drop in recreation and household equipment prices. Despite these challenges, electronics and appliance retailers continue to report significant sales slumps amid global trade tensions and uncertainty ahead of federal elections. Industry leaders caution that retail recovery is fragile, as persistent inflation and volatile economic conditions continue to pressure both consumers and businesses.